Whitehorse, Y.T.-based BYG Natural Resources (BYG-T) plans to acquire a controlling position in Vancouver-based YGC Resources (YGC-V) for $2.3 million.
The deal would see BYG acquire Wheaton River Minerals’ (WRM-T) 6 million shares (or 61.9% stake) in YGC for $1.6 million in cash and 438,596 BYG shares.
The deal also includes a $200,000 debenture of BYG, convertible into 338,983 shares of Trumpeter Yukon Gold shares currently owned by BYG.
By selling its YGC shares, Wheaton hopes to focus on bringing the Golden Bear mine into production. Situated in northwestern British Columbia, the mine is owned by North American Metals, a subsidiary of Wheaton River.
YGC also has interests in the Yukon, including the Grew Creek and Ketza River gold projects and several base metal prospects near Finlayson Lake.
BYG intends to either joint-venture the Ketza River project or enter into a custom-milling arrangement, as permitting allows.
YGC will continue to act as an exploration company, operating primarily in the Yukon.
BYG has a 100% interest in the Mt. Nansen gold-silver operation in the Yukon, as well as direct and indirect interests in exploration projects associated with the Mt. Nansen trend.
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